Dec 19, 2018
Since a 3.6 magnitude earthquake in the Groningen town of Huizinge in 2012, the province has been reeling from more man-made quakes induced by natural gas extraction in the region. Is there an end in sight to the earthquakes? What happens after natural gas extraction ends in the north? Professor of regulation of energy markets Machiel Mulder and his colleagues at the Faculty of Economics and Business recently published a policy paper, “Gas production and earthquakes in Groningen: reflection on economic and social consequences”, so in this episode of Econ 050, professor Mulder talks about how he was surprised by the government's decision to shut down gas extraction in Groningen altogether by 2030, the costs involved in stopping, and just how interwoven the Dutch government itself is in the industry.